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 The Sharenet Daily 
Tuesday, 09 December 2014 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

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Seed weekly - Portfolio Concentration

Investors holding very concentrated investment portfolios are a common occurrence in the investment world. Typical examples of concentrated portfolios include where an investor has the majority of his/her wealth tied up in shares of a privately owned business, holding large amounts of your employer’s stock, or being heavily invested in certain sectors of the market.

If the wealth of an investor is tied up in a concentrated portfolio, the risks faced are markedly different from a client with a diversified portfolio. Some (but not all) of the risks faced are highlighted below:

The value of any asset in the shorter term, especially shares, is worth what the next person is willing to pay for it. The audited statements may point to the longer term value of a business, but a large portion of the value may be lost when the person running the business is no longer there. It is therefore important to be aware of the value of the business principle/founder in a smaller enterprise and what the business is worth if he/she is no longer there.

Another big risk facing the investor surrounds the liquidity of the asset. If a person holds a large amount of a single company’s stock and needs the assets to retire with, either the capital or dividends will need to fund the income for the investor. If these shares can be easily sold and the act of selling the shares doesn’t adversely affect the price, the risk is largely mitigated. However, in many instances the shares are illiquid, not enabling the investor to generate the required cash flow from selling the shares.

A very serious consideration, often overlooked, is the volatility one is exposed to when your wealth is concentrated. This is often more serious when the business is very dependent on the business cycle to make a profit. More concentrated portfolios afford less protection to investors during times when the assets underperform. As a rule of thumb, the peaks and troughs of the cycles are much less pronounced in a diversified portfolio compared to a concentrated one. For long term investors this is not as much of a concern as for a person looking to sell shares in the near to medium term.

Going concern:
This risk can be applied broadly and is applicable to many different situations. The most obvious going concern risk is when you have a large holding in your own business/employer’s shares and the company goes under. If this happens you are out of a job and made a big loss financially. This is the most extreme example. It can also happen when you are employed in a certain sector and use your expertise of this sector to buy shares in a related company because of your greater understanding of the industry. Once again if the sector is going through a difficult period your employment may be at risk at the same time as when the value your investment holdings will be, often severely, depressed.

Most business owners are subject to being taxed at a very high level when they sell their shares. The risk for them is more pronounced as the majority of the stock they own was accumulated at a very low base cost (assuming that the shares were issued when the business was founded) and therefore almost the entire value will be seen as a taxable gain by the authorities. Not planning for the effect taxation has on your investment holdings may be detrimental to your financial health.

The above are a few of the risks faced by clients with concentrated portfolios. For each of the risks faced there are a multitude of options available for an investor. At Seed we are aware of the above and many more risk factors and through expert consultation are able unlock value and mitigate risks faced by our clients. Although it is crucial to manage the risks you face throughout the year it offers peace of mind to know that you have measures in place for the new calendar year fast approaching. By setting up a consultation with Seed we are able to assist you by putting measures in place to protect your wealth against risks such as those mentioned in this article.

Kind regards,

Stefan Keeve

021 914 4966

Tue, 09 Dec 2014
Top News
South African shares plunged more than 2 percent on Tuesday, the biggest one-day drop in a year, as falling oil and commodity prices depressed sentiment and dragged iron ore producers such as Kumba lower.  Full story

Local markets The JSE All Share fell 2.04% on Tuesday, as losses in resources and industrial shares weighed. Gold miners had gained 3.91% by 5pm. Statistics SA revealed today that local manufacturing slowed in October compared to last month.  Full story
India ordered state governments to halt the operations of all unregistered, web-based taxi companies on Tuesday after a female passenger reported she was raped in New Delhi by a driver contracted to U.S. cab company Uber.  Full story
More than 150 protesters were arrested in California overnight after shutting down a major freeway in another outbreak of nationwide demonstrations against police use of deadly force on minorities.  Full story
Hong Kong police announced plans to clear away the last of the "Occupy" protest encampments that have blocked key roads in the financial hub for over two months, setting up what could be a final showdown with pro-democracy activists on Thursday.  Full story
Investors aggressively sold equities worldwide on Tuesday, after China's market posted its worst day in five years and oil prices fell to levels. . .  Full story
Gold rose 2 percent on Tuesday, hitting its highest since late October, as cautious comments from U.S. Federal Reserve policymakers prompted a pullback. . .  Full story
Hong Kong shares fell on Tuesday hit by profit-taking and a slump in Chinese stocks after a two-week rally on the mainland.. . .  Full story
Japan's Nikkei share average fell on Tuesday, snapping a seven-day winning streak and pulling away from 7-1/2-year highs as a rebound in the. . .  Full story

Australian shares dropped 1.7 percent on Tuesday on a broad-based sell-off as renewed concerns about global growth, sinking oil prices and declining business confidence. . .  Full story
U.S. and European stocks fell on Monday after weak Chinese and Japanese data stoked worries about slowing global economic growth, while oil prices. . .  Full story
Gold jumped more than 1 percent on Monday on a brief surge of late-day technical buying as it breached the $1,200-per-ounce level long. . .  Full story
Hong Kong shares rose on Monday, heartened by strong U.S. employment data and as China shares continued to outperform on the back of. . .  Full story
SA Business
South Africa's manufacturing production slowed in line with expectations in October, expanding 2.2 percent year-on-year from a revised 8.6 percent growth in September, Statistics South Africa said on Tuesday.. . .  Full story
Statistics South Africa released its monthly mining production data for September on Tuesday. Below is the breakdown of the main minerals.. . .  Full story
South Africa's rand slipped further early on Tuesday after hitting record lows against the dollar in the previous session and looked set to continue its slide before the release of mining. . .  Full story

Global miner Anglo American aims to cut around 60,000 jobs as part of a wider reorganisation, Chief Executive Mark Cutifani said on Tuedsay.. . .  Full story
South Africa's Treasury sold 2.35 billion rand ($205 million) worth of its 2044, 2032 and 2036 bonds on Tuesday. Yields were mixed compared to their previous sales.. . .  Full story
Shares of South Africa's Impala Platinum fell to their lowest level in more than nine years on Tuesday after the company said it expected first-half earnings to fall by more than. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall16:5148578.34-1011.86-2.04%
JSE Top 4016:4942941.81-1030.52-2.34%
JSE Gold16:501107.9141.683.91%
JSE Financial16:5039958.65-740.74-1.82%
JSE Industrial16:5168368.10-1468.46-2.10%
JSE Indust 2516:5060421.97-1412.64-2.28%
JSE Resource16:5041835.02-949.83-2.22%
DJ Futures19:5817710.00-149.00-0.83%
DJ Ind19:5817715.34-137.14-0.77%
SP 50019:582049.38-10.93-0.53%
FTSE 10017:576549.83-122.32-1.83%
All Ords07:475258.30-90.60-1.69%
NZSE 5008:285542.9313.610.25%
NameTimeRPMove% Move
Gold $19:591228.8025.582.13%
Gold R19:5814069.91193.241.39%
Gold R/kg19:5845225598692.23%
Silver $19:5917.0600.72404.43%
Platinum $19:591245.5118.511.51%
Palladium $19:59811.0513.801.73%
Brent Crude19:5866.86-2.21-3.20%
Rand / Dollar19:5911.4491-0.0869-0.75%
Rand / Pound19:5517.9138-0.1213-0.67%
Rand / Euro19:5514.1835-0.0174-0.12%
Rand / NZD19:588.8308-0.0022-0.02%
Rand / AUD19:559.5241-0.0464-0.48%
Yen / Dollar19:59119.2990-1.2500-1.04%
Euro / Dollar19:550.8070-0.0048-0.59%
Dollar / Euro19:591.23930.00780.63%
Pound / Dollar19:550.6377-0.0006-0.09%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 KIBO  1754736.72.%489411
2 EFFICIENT  5058219.39.%16400
3 AMECOR  2703816.38.%40972
4 DRDGOLD  235156.82.%611043
5 HARMONY  20601286.63.%2723602
6 ASCEN_B  250156.38.%33794
7 POYNTING  240125.26.%32985
8 MIXTEL  321165.25.%59120
9 SIBANYE  2057914.63.%1658405
10 KEATON   230104.55.%37449
11 AUSTRO  21094.48.%44765
12 NAMPAK  42061634.03.%2187388
13 WBHO  123984403.68.%142492
14 METMAR  11443.64.%9989
15 GFIELDS  49671713.57.%3206229
16 ELLIES   15053.45.%1728395
17 HULAMIN  712223.19.%2806741
18 INTEWASTE  13443.08.%9482
19 ANGGOLD  101242953.00.%1599998
20 CASHBIL  165004752.96.%26833

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Major Moves Down
SharenameSaleMove% MoveVolume
1 MONTAUK  280-220-44.00.%21744
2 PUTPROP  702-88-11.14.%1300
3 DENEB  250-28-10.07.%147017
4 NIVEUS  3100-300-8.82.%190335
5 TREMATON  320-30-8.57.%1300
6 OANDO  110-10-8.33.%40739
7 GRINDROD  2100-150-6.67.%1191445
8 BELL  890-60-6.32.%13902
9 RANGOLD  200-10-4.76.%1132
10 MMG  2000-100-4.76.%5975
11 RBPLAT  5100-249-4.66.%999410
12 IMPERIAL  18045-874-4.62.%1215845
13 ELBGROUP  4200-200-4.55.%1519
14 LEWIS  7484-336-4.30.%470381
15 NASPERSN  138900-6220-4.29.%1676947
16 EQSTRA  340-15-4.23.%5144877
17 AQUARIUS  240-10-4.00.%2930708
18 ASSORE  14961-586-3.77.%147313
19 SIRIUS  615-24-3.76.%525146
20 INVPLC  9625-375-3.75.%801992

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New Highs
SharenameSaleHighMove% MoveVolume
1 KIBO  1752354736.72.%489411
2 EFFICIENT  5055058219.39.%16400
3 AUSTRO  21021594.48.%44765
4 CALGRO  10501100262.54.%30850
5 ACSION  11001100201.85.%133000
6 ARROW-A  90290970.78.%678788
7 OAKBAY  1029102940.39.%2000
8 BATS  6463666750-1902-2.86.%412588

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New Lows
SharenameSaleLowMove% MoveVolume
1 RBPLAT  51005001-249-4.66.%999410
2 EQSTRA  340310-15-4.23.%5144877
3 ASSORE  1496114200-586-3.77.%147313
4 SASOL  4030039710-1440-3.45.%3507777
5 KUMBAIO  2427423600-779-3.11.%475048
6 OMNIA  1720017170-532-3.00.%429330
7 PPC  24002347-54-2.20.%1321239
8 ARM   1165011127-230-1.94.%1469946
9 HOSP-B  180171-3-1.64.%373247
10 ANGLOPLAT  3395032501-382-1.11.%277677
11 IMPLATS  77007155-50-0.65.%2863514
12 ARCMITTAL  2488235680.32.%1056455
13 DRDGOLD  235207156.82.%611043

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Index Summary
Index NameRPMove% Move
Top 4042,941.81-1030.52-2.34%
Mid Cap67,642.88-344.84-0.51%
Small Cap57,147.41-436.14-0.76%
Resource 2041,835.02-949.83-2.22%
Industrial 2560,421.97-1412.64-2.28%
Financial 1515,277.83-329.01-2.11%
Financial & Ind. 3064,666.41-1536.08-2.32%
All Share48,578.34-1011.86-2.04%
Oil & Gas 30,587.66-998.90-3.16%
Mining 25,299.36-483.48-1.88%
Gold Mining1,107.9141.683.91%
Platinum Mining33.60-.57-1.67%
GENERAL MINING7,416.62-195.89-2.57%
Oil & Gas Producers 16,446.42-537.09-3.16%
Basic Materials 22,980.37-458.93-1.96%
Chemicals 22,153.49-454.79-2.01%
Forestry & Paper 32,230.41-857.41-2.59%
Industrial Metals 13,479.47-376.43-2.72%
Industrials 44,718.68-621.39-1.37%
General Industrials 151.04-1.63-1.07%
Consumer Goods 62,761.51-1321.09-2.06%
Automobiles & Parts 7,420.63-108.69-1.44%
Household Goods404.08-9-2.11%
Health Care 9,865.92-205.18-2.04%
Beverages 203.44-3.46-1.67%
Index NameRPMove% Move
Food Producers 9,130.55-23.02-0.25%
Personal Goods 1,044.31-28.46-2.65%
Consumer Services 13,175.34-382.43-2.82%
General Retailers 71,263.14-182.49-0.26%
Travel & Leisure 6,227.77-7.72-0.12%
Media 302.62-13.98-4.42%
Support Services 2,905.13-5.29-0.18%
Telecommunications 10,604.35-160.35-1.49%
Financials 39,958.65-740.74-1.82%
Banks 70,321.17-1317.38-1.84%
Non-life Insurance 55,536.32-229.70-0.41%
Life Insurance 37,209.58-768.69-2.02%
General Financial 3,866.43-102.11-2.57%
Technology 48,382.87-32.72-0.07%
SHARIAH TOP40 3,456.28-78-2.19%
FTSE/JSE SHARIAH ALL3,699.43-70-1.85%
COAL MINING13,273.85-245-1.81%
FTSE JSE Fledgling 6,453.65200.32%
FTSE/JSE Alt X 1,393.4310.07%
CAPPED PROPERTY 502.94-1.05%
RESOURCE 22,833.69-490-2.10%
DIVIDEND PLUS226.27-3-1.43%
FTSE/JSE RAFI 409,259.81-176-1.87%
Capped Top 4022,901.08-549-2.34%
Capped All Share24,635.87-513-2.04%
JSE TABACO 8,262.80-240-2.82%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
11/12/2014DELTA INTMay 2014 (Q)
11/12/2014HWANGEDecember 2013 (Final)
11/12/2014HWANGE-ADecember 2013 (Final)
11/12/2014SACOVENSeptember 2014 (Interim)
11/12/2014SVFJune 2014 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
LIBHOLD1108/12/1423/12/1405/01/15ZAR 0.0550
NAMPAK 6%P05/12/1416/01/1526/01/15ZAR 0.0600
NAMPAK 6.505/12/1416/01/1526/01/15ZAR 0.0650
ARGENT04/12/1420/03/1530/03/15ZAR 0.0800
CROOKES02/12/1402/01/1512/01/15ZAR 0.6500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
MRPRICE17/11/1405/12/1415/12/14ZAR 2.1150
ECSP C28/11/1405/12/1415/12/14ZAR 1.0164
HOLDSPORT18/11/1405/12/1415/12/14ZAR 0.9900
HOLDSPORT03/10/1405/12/1415/12/14ZAR 0.8500
ECSP A28/11/1405/12/1415/12/14ZAR 0.7671

Upcoming AGMs**
CodeCompany NameDateStatus
AIAAscension Properties Ltd.09/12/2014Confirmed
AIBAscension Properties Ltd.09/12/2014Confirmed
CATCaxton and CTP Publishers and Printers L...10/12/2014Confirmed
CATPCaxton and CTP Publishers and Printers L...10/12/2014Confirmed
GPLGrand Parade Investments Ltd.10/12/2014Confirmed

Stock Exchange News Service
09/12/201417:27PURPLE GROUP LIMITED - Final terms of the restructuring of certain Purple Group ...
09/12/201417:12ATTACQ LIMITED - Submission of a resolution of Attacq shareholders in terms of S...
09/12/201417:12ASCENSION PROPERTIES LIMITED - Results of annual general meeting
09/12/201417:00INVESTEC PLC - Investec Ltd \Investec Plc - Award of nil cost options in Investe...
09/12/201417:00OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
09/12/201416:30TOTAL CLIENT SERVICES LIMITED - Changes To The Board - Appointment Of Directors
09/12/201416:00INDEQUITY GROUP LIMITED - Abridged report for the year ended 30 September 2014
09/12/201416:00SACOVEN PLC - Appointment of an alternate director
09/12/201415:41PURPLE GROUP LIMITED - Dealings in securities by associates
09/12/201415:24VISUAL INTERNATIONAL HOLDINGS LIMITED - Unaudited Interim Condensed Results for ...
09/12/201415:13THE SPAR GROUP LIMITED - Notice of a disposal of a beneficial interest in SPAR s...
09/12/201415:00PETMIN LIMITED - No Change Statement and publication of Integrated Report
09/12/201414:35KAP INDUSTRIAL HOLDINGS LIMITED - Grant of share rights
09/12/201414:33ATLANTIC LEAF PROPERTIES LIMITED - Placement of 4 389 389 new Atlantic Leaf shar...
09/12/201414:25GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
09/12/201414:20OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
09/12/201413:30ANGLO AMERICAN PLC - Anglo American Investor Day
09/12/201413:30KUMBA IRON ORE LIMITED - Kumba Iron Ore technical update
09/12/201413:30ANGLO AMERICAN PLAT LTD - Anglo American Platinum Operational Performance and An...
09/12/201413:29FORTRESS INCOME FUND LIMITED - Issue of linked units to the Siyakha Education Tr...
09/12/201413:27ATTACQ LIMITED - Results of the accelerated bookbuild
09/12/201413:24LIFE HEALTHCARE GROUP HOLDINGS LTD - Disclosure of significant holding of Blackr...
09/12/201413:00QUANTUM FOODS HOLDINGS LIMITED - Notification of Acquisition of Interest
09/12/201413:00TRUWORTHS INTERNATIONAL LIMITED - Notice of an acquisition of a beneficial inter...
09/12/201412:50INGUZA INVESTMENTS (RF) LIMITED - Release of annual financial statements
09/12/201412:50INDWA INVESTMENTS LIMITED - Release of annual financial statements
09/12/201412:50IVUZI INVESTMENTS LIMITED - Release of annual financial statements - BIIVU
09/12/201412:43SILVERBRIDGE HOLDINGS LIMITED - Dealings In Securities By A Director
09/12/201412:35DIGICORE HOLDINGS LIMITED - Acceptance of Options Granted in Terms of the Digico...
09/12/201411:45NAMPAK LIMITED - Dealings in Securities by a Director, Company Secretary and Dir...
09/12/201411:37SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing - SY1208
09/12/201411:29SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing - SY1207
09/12/201411:00NEDBANK GROUP LIMITED - Nedbank Group executive leadership appointments
09/12/201410:42EQSTRA HOLDINGS LIMITED - Executive appointment - Eqstra Contract Mining and Pla...
09/12/201410:30SAFARI INVESTMENTS (RSA) LTD - Dealing in Securities by an Associate of a Direct...
09/12/201410:18RCS INVESTMENT HOLDINGS LTD - Listing of new financial instrument: RCSB07
09/12/201410:15NU-WORLD HOLDINGS LIMITED - Dealing in securities by a Director
09/12/201410:10NU-WORLD HOLDINGS LIMITED - Disclosure of Disposal of Securities
09/12/201409:45TRADEHOLD LIMITED - Director's Dealings in Securities by Executive Director
09/12/201409:30SATRIX COLLECTIVE INVESTMENT SCHEME - Listing of Additional Satrix Fini Securiti...
09/12/201409:10NEW GOLD ISSUER LIMITED - Partial De-listing of NewGold Debentures
09/12/201409:00GLENCORE PLC - GLN - Transaction in own shares
09/12/201409:00BUILDMAX LIMITED - Dealings by a director of a major subsidiary
09/12/201409:00ATTACQ LIMITED - Accelerated bookbuild
09/12/201409:00KIBO MINING PLC - Rukwa Definitive Mining Feasibility Study Phase 1, Stage 1 Re...
09/12/201409:00ABSA CAPITAL - New Financial Instrument Listing - LPBCP14
09/12/201408:52HULAMIN LIMITED - Revised trading statement
09/12/201408:40DRDGOLD LIMITED - Dealing in securities by a director
09/12/201408:00BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
09/12/201408:00BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
09/12/201408:00IVUZI INVESTMENTS LIMITED - Full Capital Redemption: IVA450
09/12/201408:00IMPALA PLATINUM HOLDINGS LIMITED - Implats Trading Statement
09/12/201407:05NEW EUROPE PROPERTY INVESTMENTS PLC - Dealings in securities by an associate of...
09/12/201407:05ANGLO AMERICAN PLC - Provisional Full Year and Interim Dividend Timetables 2015

Click here for more SENS news